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International Affairs and Global Strategy www.iiste.org ISSN 2224-574X (Paper) ISSN 2224-8951 (Online) Vol.23, 2014 10 Transformational leadership and its Applications in the public service organizations of Ethiopia Zerihun Duressa (Corresponding Author) Ethiopian Civil Service University, Ethiopia E-Mail [email protected] Melesse Asfaw, Ph.D., PMP Ethiopian Civil Service University, Ethiopia E-mail [email protected] Abstract In Ethiopia since 1994, to address the leadership problems that had existed in the country for many years, significant policy changes have been introduced. Under the umbrella of the CSRP, different reform initiatives like BPR, BSC, and currently building development /reform army in the public service organizations have been designed to be implemented .Public service leaders at different level advocate transformational agenda to achieve growth and transformational plan (GTP) goal by implementing these reform tools. However, the reform programs/ initiatives designed to improve the performance of public service organizations were not executed at the speed that both government and customers’ desired. Therefore, the objective of this article was to investigate challenges facing public service leaders to become transformational leaders and assesses the components of transformational leadership style that leaders of public service organizations are missing in Ethiopian case. The study was employed focusing on evaluating the efficiency and effectiveness of the reform programs. The descriptive survey by using mixed method (more of quantitative and some qualitative for triangulation) research approach was applied. The categories of respondents were leaders, employees and organizational customers. Oromia region, Benshangul-Gumuz, and Addis Ababa regions were selected. Analysis of documents, interviews and responses to both open and close-ended questions were made using SPSS software. The key findings revealed that the changes in Ethiopia enabled public service organizations to create demanding society for improved services. However, leaders are not at its required level to transform their organizations and to meet these demands. Lack of setting clear vision and properly communicating are among the major problems. There is high degree of variation among managers of different levels in the areas of organizational performance. Finally, the recommended solutions, is to develop transformational leaders that can initiate system based thinking in order to realize the vision of the country. Key Words: transformational leadership, organizational performance, public service organization, civil service reform program, 1. INTRODUCTION 1.1. BACK GROUND Beukman (2005) has noted that leadership is vital for any success in life of individual as well as teams in the organizations across different levels of organizations. Recently Transformational leadership style, among any other style, has rapidly become the style of leadership chosen for application in transforming the performance of organizations. This is because of transformational leadership, can create a difference and bring a change or a transformation in many ways (Bass and Riggio, 2006). . Most organizational theorists also agree that transformational leadership is effective leadership style and the most important contributors to overall organizational performance success (Palestini 2008, and Barbara 2002). The reason why these all interest developed in transformational leadership is because it better fit for leading a today’s complex work groups and organizations where all employees and customer seek an inspirational leader to guide them in the environment of uncertainty (Hayes 2010). On the other hand, others stressed that the process of transforming leadership is the greatest challenge of all countries in the world, and the major problems related to organizational performance and good governance are highly related to lack of effective leadership. This is more critical for developing countries and the same thing could be true for the countries like Ethiopia. Some writers Mesfin (2006) and Tesfaye (2009) has discussed the importance of leadership effectiveness in leading changes and the challenges of Ethiopian leaders at different levels in aligning the organizational strategy to the performance with gaps to be filled. Ethiopia, urgently engaged to implement three interdependent hierarchies of goals: millennium development goals, its own long term vision and the country’s GTP. To this end, the country has designed different strategies to improve the capacity of leaders in the pubilic service organizations. To address the

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International Affairs and Global Strategy www.iiste.org

ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)

Vol.23, 2014

10

Transformational leadership and its Applications in the public

service organizations of Ethiopia

Zerihun Duressa (Corresponding Author)

Ethiopian Civil Service University, Ethiopia

E-Mail [email protected]

Melesse Asfaw, Ph.D., PMP

Ethiopian Civil Service University, Ethiopia

E-mail [email protected]

Abstract

In Ethiopia since 1994, to address the leadership problems that had existed in the country for many

years, significant policy changes have been introduced. Under the umbrella of the CSRP, different reform

initiatives like BPR, BSC, and currently building development /reform army in the public service organizations

have been designed to be implemented .Public service leaders at different level advocate transformational agenda

to achieve growth and transformational plan (GTP) goal by implementing these reform tools. However, the

reform programs/ initiatives designed to improve the performance of public service organizations were not

executed at the speed that both government and customers’ desired. Therefore, the objective of this article was to

investigate challenges facing public service leaders to become transformational leaders and assesses the

components of transformational leadership style that leaders of public service organizations are missing in

Ethiopian case. The study was employed focusing on evaluating the efficiency and effectiveness of the reform

programs. The descriptive survey by using mixed method (more of quantitative and some qualitative for

triangulation) research approach was applied. The categories of respondents were leaders, employees and

organizational customers. Oromia region, Benshangul-Gumuz, and Addis Ababa regions were selected. Analysis

of documents, interviews and responses to both open and close-ended questions were made using SPSS software.

The key findings revealed that the changes in Ethiopia enabled public service organizations to create demanding

society for improved services. However, leaders are not at its required level to transform their organizations and

to meet these demands. Lack of setting clear vision and properly communicating are among the major problems.

There is high degree of variation among managers of different levels in the areas of organizational performance.

Finally, the recommended solutions, is to develop transformational leaders that can initiate system based

thinking in order to realize the vision of the country.

Key Words: transformational leadership, organizational performance, public service organization, civil service

reform program,

1. INTRODUCTION

1.1. BACK GROUND

Beukman (2005) has noted that leadership is vital for any success in life of individual as well as teams

in the organizations across different levels of organizations. Recently Transformational leadership style, among

any other style, has rapidly become the style of leadership chosen for application in transforming the

performance of organizations. This is because of transformational leadership, can create a difference and bring a

change or a transformation in many ways (Bass and Riggio, 2006). .

Most organizational theorists also agree that transformational leadership is effective leadership style

and the most important contributors to overall organizational performance success (Palestini 2008, and Barbara

2002). The reason why these all interest developed in transformational leadership is because it better fit for

leading a today’s complex work groups and organizations where all employees and customer seek an

inspirational leader to guide them in the environment of uncertainty (Hayes 2010).

On the other hand, others stressed that the process of transforming leadership is the greatest challenge

of all countries in the world, and the major problems related to organizational performance and good governance

are highly related to lack of effective leadership. This is more critical for developing countries and the same

thing could be true for the countries like Ethiopia. Some writers Mesfin (2006) and Tesfaye (2009) has discussed

the importance of leadership effectiveness in leading changes and the challenges of Ethiopian leaders at different

levels in aligning the organizational strategy to the performance with gaps to be filled.

Ethiopia, urgently engaged to implement three interdependent hierarchies of goals: millennium

development goals, its own long term vision and the country’s GTP. To this end, the country has designed

different strategies to improve the capacity of leaders in the pubilic service organizations. To address the

International Affairs and Global Strategy www.iiste.org

ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)

Vol.23, 2014

11

leadership problems that had existed in the country for many years significant policy changes have been

introduced (Getachew and Rechard 2006). CSRP and Under its umbrella, different reform initiatives like BPR,

BSC, and currently building development /reform army in the public service organizations have been

implemented since 1994.

The Growth and Transformation Plan (GTP) and the attainment of this vision presuppose undertaking

leadership efforts that include the introduction of radical changes in existing operating Systems in the public

sectors. On the other hand, all the increased demand for change from all stakeholders calls for the adoption of a

more focused and strategic approach of transformational leadership. This requires transformational leaders for

the successful implementation of polices and strategies.

Furthermore, transformational leadership has a paramount importance for the implementation of

different developmental strategies the country is currently engaged based on the following assumption; the

agricultural development led industrialization and rural development, urban and industrial development,

democratization and good governance policies of the country can only be achieved only through

transformational leaders at all levels. So it is important to conduct studies to evaluate and determine the status of

leadership affairs with the view of enabling public service leaders, policy makers and all stake holders to have

information on how transformational leadership is vital in order to realize government’s economic, social,

political, and technological visions.

1.2. Problem Statement

In Ethiopia, the reform programs/ initiatives designed to improve the performance of public service

organizations were not executed at the speed that both government and customers’ desired. There is high gap

between how Public service organizations are providing services and how the citizen’s need the services to be. It

seems something is missing in the leadership practices of the organizations and public interest. Institutions

experienced different challenges, and the level of challenges varies from federal level to regions and it is more

acute at public service institutions of regional levels. As stressed by some writers the major problems related to

organizational performance in one way or the other were highly related to lack of transformational leadership

(Mesfin 2006; Paulos 2000). To address the leadership problems that had existed in the country for many years,

significant policy changes have been introduced (Getachew and Rechard 2006) since 1994. Under the umbrella

of the CSRP different reform initiatives like BPR, BSC, and currently building development /reform army in the

public service organizations have been designed to realize the objectives of the refom. Mere designing the

initiatives do not yield the intended results. As indicated by Senge (1994) and Northouse (2010) there should be

a link between the change efforts/initiatives designed and leadership approach in order to bring effectiveness to

the expected level of standards. In addition to Senge(1994), Kaplan and Norton (2010) also particularly

underline the organizations have to continuously develop a new mindset so as to manage and lead the changes.

In Ethiopia, the Government effort to implement a comprehensive Civil Service Reform Program

(CSRP) with the aim of developing a fair, transparent, efficient and ethical civil service to bring institutional

transformations has brought some changes. Many public service organizations have tried to implement the

reform programs and some improvements have registered. .

However, as transformational leadership is a very young theory in Ethiopian context, elsewhere too,

except some attempts of defining it, less attention has been given to implementation of all its components in

leadership practices. Moreover the today’s public service organizations in Ethiopia seek for leadership that is

inspirational, stimulating and considerate of followers’ and customers’. Therefore the effectiveness in reform

implementation or organizational performance depends up on the committement of the leaders.

For this purpose, this study is expected to contribute in identifying the components of transformational

leadership style necessary, and what has been l missing, for implementing the change initiatives.it is also

important in improving the effectiveness of organizational performances a whole and shift its traditional to

modern management systems and practices. The research result, in that it notes the leadership challenges and

limitations; will have high contribution to the Public Service indicating on how the national vision should be

articulated. Furthermore, it indicates the competence of managerial leadership and the need of the partnership

with other players to translate the national vision into tangible outcomes.

1.3. Objectives

1.3.1. Major Objective

The major objective of the study is to assess the relationship between transformational leadership and

organizational performance in Ethiopian public service organizations. In general, this study (article) specifically

attempted to:

� Analyze to what extent the leaders of public service organizations became transformational leaders and

improve the effectiveness of the performance of their organizations.

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� Assess the components of transformational leadership that leaders of public service organizations are

missing in Ethiopian case.

� Assess the challenges that leaders are facing at different levels in transforming the mission and visions

of their organizations.

1.4. Significance of the Study

The findings of the study are highly significant for public service organizations’ of Ethiopia to

implement the interdependent hierarchies of goals and the growth and transformation plan of the country.

Ethiopia is striving to maintain accelerated and sustainable development and there by achieve its vision of

becoming middle-income country by the early of 2020’s.Therefore, the finding of this study may serve as an

input to materialize the vision of the organizations by assessing the leadership factors that can affect their

transformations.

The attainment of the vision of the country presupposes undertaking transformational leadership efforts

that include the introduction of radical changes in existing operating Systems in the public sectors. For this

purpose, this study will help policy makers and practitioners develop the culture of assessing organizational

change management efforts related to the identifying the leadership style essential for implementing the change

initiatives and to shift to modern management systems and practices.

Moreover, the public will benefit from the study as the findings try to identify the gaps in

implementations of policies and strategies. In other words it will add some value s in the efforts of building good

governance and democracy.

In addition to these, it can be a good benchmark for future researchers who would be interested to

conduct study in the area of public service leadership. Therefore, research result, will have high contribution to

the Public Service indicating on how the national vision should be articulated, by improving the competence of

managerial leadership.

1. Theoretical framework and Literature Review

2.1. Theoretical framework

Components of Transformational Leadership

Idealized + Inspirational + Intellectual + Individual

Influence Motivation Stimulation Consideration

Performance Effectiveness

Figure 1. Conceptual Frame Work Adopted By the Researcher

The components of transformational leadership in the frame work above have been discussed here

under showing the character/behavior of transformational leader in bringing effectiveness in organizational

performance. Based up on the ideas of Bass and Riggio (2006) the study assesses how the leaders are practicing

the four characteristics of transformational leadership in change management efforts as follows;

2.1.1. Idealized Influence: Here the assumption is the leader create the vision and communicate it

broadly, shared it to all members of the organization, and this vision indicates the ultimate outcomes which the

leaders and has to lead by example and serve as a role model and consistently need to behave with the vision set.

2.1.2. Inspirational motivation: when the leader shows the character of excitement and heightens the

expectations of employees and customers in communicating the vision, employees build confidence in the vision

and at the same time self confidence among them.

2.1.3. Intellectual stimulation: in addition to the above characters encouraging creativity, arousing

interest in to new ideas and to the change introduced is very important to bring effectiveness in performance.

Furthermore, it elaborates enabling the members of the organization to think differently about the old problems

in new ways and transformational leader motivate rethinking and questioning of old ways of doing things.

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2.1.4. Individual consideration: the assumption behind this is, if the leaders coaches and contributes

his advice with the necessary help, the members can highly improve performance. This requires high listening

ability and expressing encouragement which includes giving regular and positive feedback for strong

performance. The writer of this article considers the above components of transformational leadership while

investigating the relationship among transformational leadership and organizational performance in the public

services of Ethiopia.

2.2. Theoretical framework

2.2.1. What is leadership?

There are many diverse definitions of leadership. For instance, Bennis (1999 ) defined leadership is the

ability to have a vision that is well communicated, build trust among colleagues, and take effective action to

realize one’s own leadership potential. Kotter (1996) pointed that leadership is a set of processes that establishes

organizations in the first place or modifies them according to changing situations. According to him leadership

provides a picture of what the future should look like, aligns people with the organizational vision, and inspires

them to make it happen. Maxwell (1998) concluded that leadership is the ability to influence others. Fiedler

(1967) argues that leadership influences organizational performance and leadership effectiveness is often seen as

crucial to explain and predict organizational performance.

2.2.2. Why leadership is so important in today’s public service organizations? Different scholars (Allio 2001, Niven 2003, Senior 2002, and Barbara 2002) argued that today

management is insufficient in its own to address the demands of the society or cope up with the large scale and

rapid reform agenda. To address the demands of today’s organizations leadership became the most important for

public sector organizations to provide ever-increasing high quality and reliable services. This implies that why

managerial work, in times of change, is increasingly leadership task.

Therefore, Leadership and the study of leadership have drawn great attention from scholars in various

fields in recent years. An underlying assumption is that leaders affect organizational performance and leaders,

through their actions and personal influence, bring about change. According to the research result of Kouzes and

Barry (2002) in today’s fast-changing world, leadership issues are getting increasingly importance in public

service organizations; both at policy and implementation level.

In other words, leadership helps make changes happen by opening channels of communication with the

public and other stakeholders (Niven 2003). Leadership helps to achieve integration across different departments

and different levels of the government utilizing technological advances effectively to improve performance, and

modifying organizational processes to promote newer ways of delivering service. These facts realize that

leadership helps organizations make the critical transition from intention to implementation, potential to

performance, and policy to practice. The next question is which style of leadership style is appropriate to make

this effective.

2.3. Leadership Theories

Numerous leadership theories and styles have been developed by scholars and practitioners who define,

and explain the importance of leadership. Of course, up to this point, there has not been any consensus among

researchers and practitioner alike as what is the best definition for leadership and the most effective leadership

theories and models.

Rather, a combination of styles, depending on the situation the leader finds him or her in, has been

found to be more appropriate (Palestini, 2004). To understand the evolution of leadership theory, it is better to

take historical approach and trace the progress of leadership theory, beginning with the trait perspective of

leadership and moving to the more current.

2.3.1. Trait Theory of leadership

Different literatures indicate that as this theory was Popular in the 1940s and 1950s. According to

Palestine (2004) Trait theory suggests that we can evaluate leadership and propose ways of leading effectively

by considering whether an individual possesses certain personality traits, social traits, and physical

characteristics.

This trait theory attempted to predict leaders based on the personality characteristic and then whether

they were effective. According to this theory, leaders differ from non leaders in their drive, desire to lead,

honesty and integrity, self-confidence, cognitive ability, and knowledge of the business they are in (Avolio &

Bass 1995). Recent research has also tied leadership effectiveness to leader traits.

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2.3.2. Behavioral Theories

The limitations in the ability of traits to predict effective leadership caused researchers during the 1950s

to view a person’s behavior, rather than that individual’s personal traits, as a way of increasing leadership

effectiveness (Hayes 2010, & Palestine 2008). And the behavioral revolution in psychology led to an attempt to

define effective leadership in behavioral terms. A large body of research (including experiments, surveys, and

organizational case studies) revealed that leaders engaged in two broad classes of behavior and labeled as four

styles. Structuring behaviors focus primarily on task accomplishment. Consideration behaviors are concerned

with subordinate motivation and morale (Ricketts 2011).

The four main styles that appear are: Concern for task, here leaders emphasize the achievement of

concrete objectives. They look for high levels of productivity, and ways to organize people and activities in order

to meet those objectives. Concern for people, in this style, leaders look upon their followers as people - their

needs, interests, problems, development and so on. They are not simply units of production or means to an end.

Directive leadership, this style is characterized by leaders taking decisions for others - and expecting followers or

subordinates to follow instructions. Participative leadership, here leaders try to share decision-making with

others (Bell 2008).These behavioral categories are pervasive across almost all leadership situations, but neither

behavior alone is sufficient to ensure leadership success (Bell 2008).

2.3.3. Situational/Contingency Theories of Leadership

The most important breakthrough in leadership research was the recognition that effective leadership

involves matching leadership behaviors and strategies to particular situational contexts( Hay 2010).

Contingency or situational models differ from the earlier trait and behavioral models in asserting that no

single way of leading works in all situations. It recommends using organizational leadership skills, and

influencing culture by motivating, influencing communications, influencing the group and leading change

(Hersey et al. 2006).

Rather, appropriate behavior depends on the situation at a given time. Effective managers diagnose the

situation, identify the leadership style that will be most effective, and then determine whether they can

implement the required style. The central idea was that effective leadership was dependent on a mix of factors.

2.3.4. Transformational Leadership

2.3.4.1. Characteristics of transformational leadership

Burns (1978) who considered as the father of transformational theory of leadership, viewed

transformational leadership as a requirement to achieve and successfully manage change in constantly changing

world conditions. The model of transformational leadership refers to a process of creating a commitment for the

strategies, objectives and mission of an organization to make effective organizational performance (Dessler,

1999; Riggio and etal, 2006).

There is a large and growing body of evidence that supports the effectiveness of transformational

leadership over other types of leadership styles. According to Bass and Riggio (2006) transformational

leadership has rapidly become the approach of choice and application of leadership theory for its emphasis on

intrinsic motivation. Bennis & Goldsmith (1997) have stressed that transformational leadership provides a better

fit for leading today’s complex work groups and organizations. It is very important where followers seek an

inspirational leader to guide them through an uncertain environment. Also transformational leadership is highly

important where followers want to be challenged and feel to be empowered, if they are to be loyal and high

performers. Recent research has also found that individuals, who are seen as outstanding leaders, across many

contexts, are described as extremely knowledgeable and trustworthy, as well as sensitive to follower needs and

encouraging of follower growth and development (Northouse, 2010).

Bass (2006) stressed that the transformational leaders acted on “deeply held personal value systems”.

And they encouraged their followers to accept organizational activities by developing of their abilities to look

above their own self interests. It also stressed by other scholars that the transformational leader transforms the

needs, values, preferences and aspirations of followers from self-interests to collective interests (Northouse,

2004; Bennis & Goldsmith, 1997). According to all these, a major factor that separated transformational leaders

from most other leaders was the ability to create and communicate a compelling vision or purpose for the group.

Transformational leadership is a new paradigm of leadership theory that has conceptualized as effective style of

leadership and important in every setting (Avolio and Yammarino, 2002; Bass and Riggio, 2006). They have

demonstrated that transformational leaders are those who stimulate and inspire followers to achieve

extraordinary outcomes.

2.3.4.2. Components of transformational leadership

Bass and Avolio, (2000) and Bass and Riggio (2006) have identified four components of

transformational leadership: Idealized influence, Inspirational motivation, Intellectual stimulation, and Individual

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consideration. These characteristics are further analyzed in this study as variable for the measure of effective

leadership by using MLQ (multifactor leadership questionnaire).

Idealized influence; Transformational leaders behave in the way that they are respected and trusted. Model the

way to the desired objectives, set the example, exemplars, [and] makers of meanings, pathfinders, and

molders of organizational culture (kouzes &pozner 2002).

Inspirational motivation; transformational leaders behave in ways that Inspire a shared vision by providing

meaning and challenge to their followers performance , Envision the future by clearly communicating

expectations that followers want to meet and also demonstrating commitment to goals and the shared

vision. Such leaders have a deep sense of the purpose for the system and a long-range strategic sense

and these provide a sense of overall direction.

Intellectual stimulation; Challenge the process, Search for opportunities, experiment and take risks and also

enable others to act, foster collaboration, strengthen followers’ efforts to be innovative and creative by

questioning assumptions, reframing problems, and approaching old situations in new ways.

Individual consideration; transformational leaders pay special attention to organizational members’ needs for

goal achievement of the organization by Encouraging the heart of everyone involved, Recognizing

individual contribution, and Celebrating accomplishments.

Anderson, Gisborne, & Holliday (2006), further explained that transformational leaders: Provide ways

to gain a visionary (vivid-vision) view of an agreed, encouraging, and preferred future. Moreover, they offer a

skilled mind in planning, managing, and leading in unpredictable change environments. So the need for leaders

to fully understand the competencies necessary to become a successful transformational leader is becoming

increasingly important due to the rapid changes and innovations in today’s market.

The writers asserted that visionary (transformational) leaders are nearly always more effective than other

leaders,. In the last three decades, visionary (transformational, charismatic) leadership has received increasing

attention (Bass, 1985, 1998; Burns, 1978). It added a new dimension to organizational studies, namely the

visionary aspect of leadership and the emotional involvement of employees within an organization. The basic

notion is that a visionary leader can create an impression that he or she has high competence and a vision to

achieve success. Subordinates are expected to respond with enthusiasm and commitment to the leadership

objectives, and may be recruited because they share the vision. Bass (1985, 1998) developed a theory of

visionary or transformational leadership whereby the leader inspires and activates subordinates to perform

beyond normal expectations.

2.3.4.3. Challenges of public services reform programs and organizational transformations in

Ethiopia

The government has been undertaking lots of reform measures in order to create effective leadership

system that support the attainment of economic development and good governance. Among these reform

programs, CSRP, Comprehensive Capacity Building Program, BPR, and BSC initiatives all aim to radically

transform the civil service system into modern, effective and efficient system that allows government to attain

the vision and policy strategies.

Even though some achievement has been registered due to these programs, the evaluation undertaken in

2010 and at different times indicated that, the implementation of the projects remain less than expectations. This

has an implication of lack of transformational leaders within the organizations able to impact the performance of

the organizations..

Another weakness by which the reform program criticized is Poor communication. As it is indicated by

Mehret and Paulos (2000) and many others BPR framework requires communication with employees, customers

and stakeholders. Due to lack of formal communication, however, confusion and rumors among employees have

been common in many public organizations. So that, transformational model of leadership is considered as the

most effective in the contemporary situations of the organizations.

Research Design/Methodology

3.1. Research Design

The research design embodies more of descriptive quantitative survey and by applying some qualitative

approach to triangulate the quantitative data. The rationale for the choice of descriptive survey method is the fact

that the descriptive studies are used in order to describe and interpret the trend of events that exists (Seyoum and

Ayalew, 1989; and Best and Kahun, 2003). Interviews were conducted to enreach the topic under study that can

contribute to the research process by providing rich interpretations of events on transformational leadership and

organizational performance. So that, the research method applied was mixed research approach.

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3.2. Sample

Ethiopia is a country that follows a federal system of government. Under this federal system of

government there are nine autonomous regional state and two city administration. It is impossible to assess the

cases of all these regions and city administration. Therefore, to make the research manageable some regions and

some organizations are selected from national to regional level following the hierarchy.

The choice of population for this study was driven by the need to extract informed and relevant

information from surveyed organization. This is essential in making informed assessments, conclusions and

recommendations at the end of the research.

The sample unit for this study consisted of pubilic service leaders, employees, andd customers of

public services (N=350). 30% of the selected public service organizations’ leaders were included by using both

probability and non-probability (random and purposeful) sampling method.

Sampling method applied by using multi-stage random sampling as follows;

A/ the first step was to stratify the sectors in to social sectors, economic sectors, and governance

sectors. Then social sectors represented by education; the economic sector represented by agriculture sector; and

governance sector represented by civil service sector. The inclusion of other sectors except civil service is based

on their performance in the implementation of reform program. But civil service organization was included in

the study because it is the leading institution of the reform initiatives in the country.

B/ among the nine regions and two city administrations of the country two regions and one city

administrations were selected purposefully. Oromia region, which is the largest region (45%) and might have

also the largest impact on the development of the country, purposefully selected as the part of the study, and

Addis Ababa city included in the study randomly from the two city administrations.

C/ From emerging regions it was tried to include one region and Bensihangul Gumuz included in the

study purposefully because this region was reported better performing region in reform implementations among

emerging regions according to the report of the government 2010/2011. This was with the view of drawing good

experiences to support other emerging regions in implementing reforms.

3.3. Methods of Data Collection

The researcher used different instruments for data collection: Questionnaire, Interview, 0bservation

focus group discussion, and document analysis (Records, reports and different documentary analysis) were

conducted from the selected regions and institutions. Furthermore, observational check-lists were prepared and

used for issues that require special attention.

3.4. Method and Tools of Data Analysis

Both quantitative and qualitative data collected by using different instruments were categorized

through coding, tabulation, and by drawing statistical inferences and were analyzed by using different tools.

Quantitative data were analyzed using ‘the Statistical Package for Social Sciences (SPSS), Microsoft Excel

package, and Web Chi Square calculator (Web tools). The chi-square test statistic and cross-tabulation were used

in the testing of the hypotheses and to identify relationships between leadership variables and organizational

performance.

Analysis of qualitative data obtained from documents, interviews and responses to both open and close-

ended questions as a whole and analysis of all data collected from primary and secondary sources was made to

support the quantitative data. Accordingly, some data analysis methods such as percentage, chi-square, t-test

were employed for the purpose of data analysis and interpretation.

1. Result and discussion: Data Presentation and Analysis

4.1. Introduction

This part of the article presents the results of the data gathered from leaders’ employees, and customers

of public service institutions by using questionnaire, interview, and focus group discussions. This article deals

with the second basic research question: what is the relationship between transformational leadership and

organizational performance in Ethiopian public service organizations. Based on the research design of the main

research the questionnaire was distributed to 150 leaders, found at different levels,100 organizational

employees, and 100 organizational customers and 350 (100%) were successfully responded and the data

gathered through interviews and focus group discussion were organized and interpreted in view of the objective

of the study and research questions.

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4.2. Characteristics of the respondents

4.2a. The following Pie charts Illustrates the demographic characteristics of the respondents

There were three categories of respondents; leaders, employees and customers from public service

organizations. As it indicated in the pie chart above from all categories the proportion of respondents were 229

(65%) male and 121(35%) females. This indicates usually in the public service organizations of Ethiopia the

number of leaders and employees are male biased. This shows that were male dominated respondents in the

study and male dominated number of leaders and employees in the public service organizations of Ethiopia.

The male and female proportion of customers has no such biasness, and both near to equal proportion (53% and

47%) since most of the customer respondents were not the members of the organizations.

Regarding their age majority of the respondents were adult or matured because 60% of them were aged

above 41 (47% of them aged between 41-50 years and 13 % aged between 51-60)). This shows that that there

were matured and well experienced leaders , employees, and customers who responded and present their ideas

for the study based on the questionnaires. The younger leaders employees, and customers who aged 18-40

years were included in the study by 40 %.

Many of the respondents do have first degree and above. First degree and above holders accounts

for83% (40% for first degree and 43% for second degree). This indicates that the educational preparation of the

respondent’s form all categories is good enough and the respondents were matured and have good background to

respond to question presented to them.

4.2b.

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4.2c. Respondents were lso catagorized by regional (74%) and federal (26 %) level respondents as

follows;

4.2d.

As it indicated in the table 1B below most of the respondents (both leaders and employees) had the

service years for so long years and have rich experiences. 61% of the respondents have served for more than 15

years (42% served for 16-20 years and 19 % above 21 years). Most leaders have worked for more than 5 years

on leadership position. Most of respondents from the employee categories also have experienced since they have

worked for more than 15 years in the organizations they are working in. This indicates that they can respond

properly regarding the phenomenon of their organizations. Very few respondents with a less experiences were

included in the studies who are new comers to the organizations.

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4.2e

On the other hand, the trend indicates that as there is high turnover, since 30 % of the respondents have

stayed under one year on the current passion and 28.0 % of them have stayed for 1-3 years in the leadership

position. Only 7.3 % of the leaders responded as they were working on leadership position for more than ten

years.

Table; 4.3. Characteristics of respondents per organizations and regions

Respondents category

Leaders Employees Customers

Organizational

level

Federal level N 41 25 24

% 27.3% 25% 24%

Regional

level

N 109 75 76

% 72.7% 75% 76%

Category of

Region

Federal level N 40 25 25

% 26,6% 25% 25%

Oromia N 49 35 35

% 32.6% 35% 35%

Addis Ababa N 30 20 20

% 20% 20% 20%

Benshangul-

gumuz

N 31 20 20

% 20.6% 20% 20%

Types of

Organization

Civil service N 39 26 28

% 26% 26% 28%

Finance and

Economic

Development

N 37 26 24

% 24.6% 26% 24%

education N 37 25 24

% 24.6% 24% 24%

Agriculture N 37 25 24

% 24.6% 24% 24%

The above table indicates the distribution of respondents across regional level, category of regions, and

the types of organizations they were drown. In order to get information from the horse’s mouth 72.7% of

leader’s respondents, 75% of employee respondents, and 76 % customer respondents were from regional level

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and the rest were from federal level. This helps to investigate the degree of integration of the organizations at

hierarchal level.

Across the regions also 32.6% of leader respondents were from Oromia region, since it is the largest

region and the rest 26.6%, 20%, and 20.6% were from federal, Addis Ababa, and Benshangul respectively.

Employees and customers with the proportion of 25% form federal institutions, 35% from Oromia, and both 20

% form Addis Ababa & Benshangul-gumuz were participated in the study. As depicted in the above table,

respondents were also from different organizations.26% of them from civil service organizations, 24% of the

respondents form each of the rest three organizations. This helps to investigate the variations performances

across regions and the gaps observed. Furthermore, by doing this the researcher gets what the phenomenon of

leadership and organizational performance look like across the regions different organizations.

4.3. RESULTS and FINDINGS

The study for this article is guided by the basic research question;

1. What is the relationship between transformational leadership and organizational performance?

Guided by the above basic question the study (article) specifically attempted to:

a. Analyze to what extent the leaders of public service organizations became transformational leaders

and improve the effectiveness of the performance of their organizations.

b. Assess the components of transformational leadership that leaders of public service organizations

are missing in Ethiopian case.

c. Assess the challenges that leaders are facing at all levels in transforming the mission and visions of

the organizations.

Instrumentation

The survey consisting of separate sections was given to three categories of respondents: leaders,

employees, and customers of public service organizations. Section one, which consists of ten questions about

demographic characteristics of the participants. Section two has different questions that solicited about the

relationship between transformational leadership and organizational performance specifically for this article. The

survey utilized a 5-point Likert- scale (latter changed to three) and other standard scale to gather the information

from the participants.

Data Analysis All data were analyzed in terms of how each survey questions addressed the research questions that

guided the study. The participants’ survey item response were entered into an excel file that was then converted

to statistical package for social science (SPSS) for statistical analysis. Analysis included descriptive statistics

represented by frequencies and percentages. Chi square was used where interest was in testing for difference

among each variable individually. The study also used correlation and ANOVA model to identify factors that

determine active participation of the local people the relationship and variances among the different groups

under study. The 0.05 probability level was used for statistical significance.

Research Question: What is the relationship between transformational leadership and organizational

performance?

Participants were asked to what extent organizational leaders have exercised transformational

leadership styles to implement government reform programs/ initiatives/projects to improve customer needs.

How organizations focused on the major strategies and became competitive to bring effectiveness in

performance were the issues considered. The opinion of the respondents indicated in the following table;

Table 4.3.1.

NO

respondents category

Leaders Employees Customers

1 Improvement of customer

needs

Low N 58 60 65

% 38.7% 60.0% 65 %

Medium N 73 30 30

% 48.7% 30% 30%

High N 19 10 5

% 12.6 % 10% 5%

2 Achievement of government

reform goals

Low N 74 62 69

% 49.4% 62% 69%

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NO

respondents category

Leaders Employees Customers

Medium N 63 30 20

% 42% 30% 20%

High N 13 8 11

% 8.6% 8% 11%

3 Organizations’

competiveness and strategy

focused

Low N 87 60 70

% 58% 60% 70%

Medium N 44 30 21

% 29.3% 30% 21%

High N 19 10 9

% 12.6% 10% 9%

4 Effectiveness in performance Very

low

N 80 57 59

% 53% 52% 59%

Medium N 47 37 31

% 31.3% 37% 31%

High N 23 11 10

% 15.3% 11% 10%

Transformational leadership presents opportunities for improving customers’ needs (Bass and Riggio,

2006).When this fact is investigated compared to the practical cases of the organizations under study the result

indicates as follows;

As indicated in the above table item one, 38.7% of the leaders, most of the employees and customers

60% and 65 % respectively responded that the degree of the improvement of customer needs is low, and only

30% of them rated at medium level. Only 12.6% of leaders rated customer need is improved at high level due to

transformational leadership. This implies that the leadership is not yet at the required level of satisfying what

internal and external customers are demanding.

Regarding the achievement of government reform goals; the importance of applying transformational

leadership style has high importance to shift radically and transformed the belief of and values of people in the

organization. However, most of the respondent’s customers by 69%, employees 62%, and leaders by 49.4%

responded the trend as very low. Respondents who rated it at medium level is less than 50%, and only 8-11 % of

respondents responded as it was high. This implies that as there are high variations. The interview conducted

with some of the organizational leaders also justified public service organizations lack competent leaders for

undertaking reform programs. And the overall implication is that transformational leadership is needed as a

critical factor in implementing change.

The item 3 of the above table systematically designed to assess how organizations became competitive

and strategy focused to lead organizational change. The Majority of the respondents (58% from the leaders,60%

from the employees, and 70% from the customers) believe that the competitiveness of public service

organizations to be strategy focused is low and to some extent became at medium level as responded by 29.3%

of leaders, 30 % of organizational employees, and 21% of the customers. The three groups don’t have

differences on their attitudes and argued the improvement is at minimal level.

Effectiveness in performance is also rated in a similar ways with the rest of variables by most of

respondents of the three groups. More than 50% of all groups responded that effectiveness in performance is

low. Only 15%, 11%, and 10% of the leaders, employees, and customers respectively responded effectiveness in

performance is achieved.

As the data in the table indicates, the respondents believe that the strategy alignment or the public

service organizations to be strategy focused was the most thing they lack and require transformational leaders to

compete this. This implies as it again highly affected the effectiveness of organizational performances.

As per interview made with employees and customers they believe that the reform programs like

BPR,BSC, and others like development of reform army, did not achieved their target as per planned. This

implies that even though some improvements have been achieved, the implementations of government reform

program still require strong transformations. The discussants of the interview were raising ideas similar with the

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22

respondents’ of the questionnaires in that the reform program were not well communicated and not

institutionalized. This was assumed as main reason for customers’ needs were not improved at required level.

In general the achievement reform program was discussed as the basic factor for the effectiveness of

organizational performance, for customer needs improvement, and for organizations to be strategy focused. And

this requires transformational leadership approach as it is stressed by some researchers as discussed in the review

of literature. Transformational style is needed to transform people and organization. Moreover, it is needed to do

more than expectations, changing the people’s mind and heart and enlarge the vision to be strategy focused, and

at the same time to improve customer needs.

To see the correlations of the variables which were rated above by respondents: there is a correlations

among the variables and it is significant among some of them. This indicates these are the related variables

affected by transformational leadership approach. However in some of them there is week correlation, but

positive as indicated below.

Table 4.3.2.

Correlations

Improvement

of customer

needs

Achievement

of

government

reform goals

Organizations’

competiveness

and strategy

focused

Effectiveness

in

performance

Spearman's

rho

Improvement

of customer

needs

Correlation

Coefficient

1.000 .621**

.455**

.459**

Sig. (2-

tailed)

.000 .000 .000

N 344 344 342 344

Achievement

of government

reform goals

Correlation

Coefficient

.621**

1.000 .747**

.650**

Sig. (2-

tailed)

.000 .000 .000

N 344 350 348 350

Organizations’

competiveness

and strategy

focused

Correlation

Coefficient

.455**

.747**

1.000 .697**

Sig. (2-

tailed)

.000 .000 .000

N 342 348 348 348

Effectiveness

in

performance

Correlation

Coefficient

.459**

.650**

.697**

1.000

Sig. (2-

tailed)

.000 .000 .000

N 344 350 348 350

**. Correlation is significant at the 0.01 level (2-tailed).

As indicated in the correlation table above, all variables improvement of customers need, achievement

of government reform needs, organizations ‘strategy focused, and the effectiveness of the organizations in

effectiveness are highly correlated, having a significant relationship possetively.so these are very related factors

to be affected by transformational leaders.

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Table 4.3.3.the extent of the qualities of transformational leadership as rated by respondents

Transformational

leadership components

respondents

category Total

leaders employees customers

Idealized influencing

charismatic, creative,

low N 58 79 68 205

% 38.67% 79.00% 93.00% 58.57%

medium N 73 10 20 103

% 48.67% 10.00% 20.00% 29.42%

high N 19 11 12 42

% 12.67% 11.00% 12.00% 12.00%

Individual

consideration/

supporting subordinate

roles

low N 74 78 80 232

% 49.33% 78.00% 80.00% 66.28%

medium Nt 63 12 12 87

% 42.00% 12.00% 12.00% 24.85%

high N 13 10 8 31

% 8.60% 10.00% 8.00% 8.85%

Intelectuall

stimulating/role model,

accountable and set

high standards

low N 89 77 80 246

% 65.33% 77.30% 80.50% 70.28%

medium N 42 16 13 71

% 28.00% 16.50% 13.30% 20.28%

high N 19 7 7 33

% 12.60% 7.20% 7.20% 9.42%

Inspirational

motivating/empowering

and delegating

low N 83 80 86 249

% 55.33% 80.00% 86.00% 71.14%

medium N 49 19 14 82

% 32.66% 19.00% 14.00% 23.42%

high N 17 0 0 17

% 11.33% 0.00% 0.00% 4.85%

The items in the table above were specifically designed to assess to what degree public service leaders

became transformational or not. To this end some qualities or components of transformational leadership were

considered. The result from the table indicates 58.57 % of respondents believe that the leaders are not

charismatic, creative or are not presenting radical solutions with the problems facing organizational members.

Among three categories of respondents only 12 % were rated as high .this implies leaders capacity is at a lower

level to in influence during the time change to pull out of crises. .

Regarding individualized consideration or in supporting subordinates role still major respondents have

rated as low by 66.28 %, while only 8.85 % have rated at high. This implies that organizational members are less

supported and employees and customers involvement/participation in the change process is not at a required

level. So a great element of transformational leadership components has been missed and actually this was

proved by the interview conducted. This again implies leaders of public service organizations in Ethiopia need to

see the vision so clearly and help followers to embrace the values so passionately.

Regarding Intellectual stimulating /playing role model/accountable and setting high standards for

performance the data from above table indicates 70.28 % of the respondents believed it is low .This implies that

the leaders ability to raise the followers creativity are much below expectation. This again indicates that the

necessary skills, behaviors, knowledge, competencies or abilities needed for leaders to be transformational need

to be designed more.

The item –in the Table –also illustrates the qualities of leaders in inspiring and motivating is rated low

by 71.14% of the respondents and only rated as high by 4 .85 % of the respondents. This also implies that leaders

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of the public service organizations are not properly sharing the visions and missions which are the building block

or the organizations.

Table 4.3.3. Correlation between transformational leadership qualities and indicators of organizational

performance

*. Correlation is significant at the 0.05 level (2-tailed).

Custome

r

satisfacti

on

Employe

e

satisfacti

on

Cost

of

servic

e

delive

ry

Performa

nce

managem

ent

One-

stop-

shop

servic

e

delive

ry

Hierarchi

cal level

reduction

Reducti

on

of

control

Charisma

tic

,creative,

empoweri

ng and

inspiratio

nal

Correlati

on

Coeffici

ent

.177**

.020 -.062 -.114* .010 .006 .068

Sig. (2-

tailed)

.001 .713 .260 .036 .853 .912 .284

N 342 335 335 339 341 341 251

Clarifies

and

supports

subordina

te roles

Correlati

on

Coeffici

ent

.112* .037 -.019 -.043 -.038 .085 .072

Sig. (2-

tailed)

.037 .497 .729 .425 .475 .115 .251

N 348 341 341 345 347 347 257

Make

decisions

as

necessary

Correlati

on

Coeffici

ent

.130* .021 .053 .024 .082 .107

* .078

Sig. (2-

tailed)

.015 .698 .327 .663 .131 .048 .216

N 346 339 339 343 345 345 255

Role

model,

accountab

le and set

high

standards

Correlati

on

Coeffici

ent

.090 .071 .062 .007 .122* .135

* .084

Sig. (2-

tailed)

.093 .194 .255 .890 .023 .012 .180

N 348 341 341 345 347 347 257

Establish

vision

and set

direction

Correlati

on

Coeffici

ent

.205**

.045 .084 .038 .143**

.071 .079

Sig. (2-

tailed)

.000 .417 .127 .488 .009 .195 .211

N 337 330 330 334 336 336 252

Empower

ing and

delegatin

g

Correlati

on

Coeffici

ent

.121* .002 .041 .042 .147

** .079 -.020

Sig. (2-

tailed)

.024 .977 .451 .442 .006 .143 .753

N 346 339 339 343 345 345 255

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There is no significant relationship between transformational leadership qualities and organizational

performance. As it can be seen at the correlation table above, there is positive correlation but highly weak. Even

some correlations are not statistically significant, because both are (the degree of leadership to be

transformational and the degree of organizational performance) are at a lower standard. so that the relationship

could not be strong. This implies a lot should be done than what have been done to improve the style of

leadership so as to improve the organizational performance.

Table 4.3.4. Correlation of Transformational leadership Qualities with some aspects of organizational

performance

Organizational performance Transformational leadership Qualities

N Pearson Correlation Sig.

Transformational leadership Qualities 350 1 0.000

Development of need and readiness for change 348 0.064 0.231

Effectiveness of shaping and communicating the strategy 349 .491** 0.000

Leadership development is effective 349 .113* 0.035

Performance improved due to reform initiatives 348 0.079 0.139

Workers are motivated in response of their efforts 349 0.068 0.208

Ways of rewarding success is established 348 0.044 0.413

** Correlation is significant at the 0.01 level (2-tailed).

* Correlation is significant at the 0.05 level (2-tailed).

As indicated in the above table the qualities of transformational leadership are correlated to other

aspects of organizational performance. Only it is observed significant with shaping and communicating the

strategy and developing leaders. with other variables it has positive correlation but weak. This indicates s the

degree of transformational leadership to bring change at the required level is too low. The performance of the

organizations is not yet improved and it needs to exert more effort. Workers motivation in response of their

effort is also indicated at low level. The same thing is true for the mechanisms of rewarding success in the

organizations.

Is there a difference in applying transformational leadership qualities across the regions and sectors?

Table 4.3.5. Across Regions

ANOVA

Sum of Squares df Mean Square F Sig.

having the qualities and

capacities of clear vision

and looking into the

future

Between Groups 1.136 3 .379 .596 .618

Within Groups 217.993 343 .636

Total 219.130 346

leaders ability to listen to

new ideas

Between Groups 6.321 3 2.107 3.963 .008

Within Groups 183.967 346 .532

Total 190.289 349

the ability of leaders to

think differently.

Between Groups 81.142 3 27.047 3.404 .018

Within Groups 2717.116 342 7.945

Total 2798.257 345

dealing with others

constantly and justly

Between Groups 23.983 3 7.994 .769 .512

Within Groups 3567.424 343 10.401

Total 3591.406 346

the ability of leaders to

clearly state what

employees and customers

expect

Between Groups 6.576 3 2.192 4.321 .005

Within Groups 172.978 341 .507

Total 179.554 344

the leaders ability to

communicate

Between Groups 28.955 3 9.652 1.547 .202

Within Groups 2127.277 341 6.238

Total 2156.232 344

the ability to make a

decision in a timely

Between Groups 4.050 3 1.350 2.614 .051

Within Groups 176.598 342 .516

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manner Total 180.647 345

the ability to listen to

customers and assign the

highest priority to

customer satisfaction

Between Groups 21.415 3 7.138 1.321 .267

Within Groups 1863.845 345 5.402

Total 1885.261 348

inspiring and

demonstrating a passion

for excellence

Between Groups 6.030 3 2.010 3.985 .008

Within Groups 172.516 342 .504

Total 178.546 345

As it can be seen form the above ANOVA table, the degree of the variations in applying

transformational leadership qualities across the regions and sectors is quit observable. There is a difference

among the performance of the regions regarding the following issues; leaders ability to listen to new ideas, the

ability of leaders to think differently, the ability of leaders to clearly state what employees and customers expect,

and inspiring and demonstrating a passion for excellence. In other variables, the trend is the same whether it is

positive or not. The variations among the performance of the regions are also indicated below.

2. The major findings

The study was designed to assess to what degree public service leaders became transformational and

bring effectiveness in organizational performance. The result showed that the leaders are not charismatic,

creative or are not presenting radical solutions with the problems facing organizational members. Even though

some improvements, the leadership style currently practicing in the public service organizations of Ethiopia is

not at level improving internal and external customer needs. The government reform programs are achieved less

than the expected level. Organizations were less focused on the major strategies and less competitive to bring

effectiveness in performance. Public service organizations lack competent leaders for undertaking reform

programs and the leaders’ ability to raise the followers’ creativity are much below expectation.

Employees and customers involvement/participation in the change process is not at a required level.

As whole, The key findings revealed that the changes in Ethiopia enabled public service organizations

to create demanding society for improved services. However, leaders are not at its required level to transform

their organizations and to meet these demands. Lack of components of the qualities of transformational

leadership is the major problems. There is high degree of variation among managers of different levels in the

areas of organizational performance.

3. Conclusions and Recommendations This study was conducted to assess the relationship between transformational leadership and

organizational performance in Ethiopian public service organizations. The major focuses were to analyze to what

extent the leaders of public service organizations became transformational leaders and improve the effectiveness

of the performance of their organizations. In addition it was to assess the components of transformational

leadership that leaders of public service organizations are missing in Ethiopian case.Based up on this the

following conclusion have been made.

The civil service reform program was designed to improve the effectiveness and efficiency of public

service performance. In addition to the comprehensive CSRP different reform initiatives like BPR, BSC,

different trial to develop citizen-charter, reform army were done to improve performance in the public service

institutions. All these require transformational leadership approach to be implemented.

Although different reform programs and the change in Ethiopia enabled public service organizations to

create demanding society for improved services, leaders are not at its required level to transform their

organizations and to meet these demands. And the overall implication is that transformational leadership is

needed as a critical factor in implementing change.

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